nft: Will crypto-bill also open a path for NFTs?

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New Delhi: Non-fungible tokens (NFTs) are the latest fad among cryptocurrency investors who want to buy the latest artwork in digital form.

NFTs are digital art collectibles that derive value from being unique and rare digital collectibles. The value of NFTs depends on the buyer’s interest and the bidding at auction. The concept is in a first phase of growth.

Industry experts are hopeful that the segment will gain some clarity after Parliament’s approval of the cryptocurrency bill during the current session. The bill aims to deploy the regulatory framework such as the legal status, classification and taxation of digital assets.

Vishakha Singh, vice president of WazirX NFT Marketplace, says the bill is a welcome move. Blockchain is all about transparency and traceability, she says. “Our current set of users are early adopters, tech savvy creators and collectors who believe in this underlying thought,” she says, adding that NFTs as a revenue stream or as an asset were not available to users before the pandemic.

Market experts suggest that NFT holders maintain transparency and report any source of income through NFTs until a suitable system is put in place.

Ashish Singhal, Founder and CEO of CoinSwitch Kuber and Co-Chair of the Blockchain and Crypto Assets Council, says he’s excited to see the implementation of NFTs beyond investments as they deliver groundbreaking use cases that can transform industries everywhere. . However, these are still the early days for blockchains and NFTs; and the two are closely related. NFTs are categorically an asset class and offer artists across the country a tremendous opportunity to generate new sources of income.

Crypto regulations will definitely have an impact on the NFT space, says Toshendra Sharma, founder and CEO of NFTically, an NFT marketplace. “NFT holders should be patient and wait for more clarity on this.”

However, a number of celebrities have entered or are considering entering the NFT arena. The list includes megastars such as Amitabh Bachchan, Salman Khan, and Ranveer Singh.

“Despite the ambiguity, the sense of community remains strong,” says Sharma of NFTically. “Celebrities and creators who have ventured into the arena of minting their digital assets are always eager to reach their audiences through the medium.”

BuyUcoin CEO Shivam Thakral said innovations like NFT should not be discouraged and the Indian government should establish a regulatory framework for these and other crypto assets. The NFT market operates in slightly different terrain than cryptocurrency. “NFTs and crypto assets are part of the blockchain revolution and their global nature allows them to thrive in any situation,” he adds.

(NFTs are not illegal in India, but neither do they have a separate legal framework. They are highly speculative and volatile assets. Investors should do extensive research before considering them.)

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